1. RECENT STATUTE.
- Subjects
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MERGERS & acquisitions , *ECONOMIC competition , *BUSINESS planning , *BUYOUTS , *CORPORATIONS , *INTERCOMPANY transactions , *MARKETING strategy , *MARKET positioning - Abstract
This article focuses on the Section 7 of Clayton Act amended to limit asset acquisitions. Acquisitions of stock of two or more corporations were similarly limited. A failure to include within this control the corporate combination techniques of asset purchase, merger or consolidation led to a complete frustration of legislative purpose. The change makes clear that even in cases where the corporations had been engaged in competition as to all the products manufactured or services rendered by each, the acquisition would not be condemned unless the effect might be a substantial lessening of competition in any section of the country. Therefore, it would seem that the market position of the acquiring corporation, the number of remaining competitors and the strength of each, and difficulty of new entry into the market should also be considered.
- Published
- 1951